In this paper we introduce an implementation for the efficient numericalsolution of exterior initial boundary value problem for parabolic equation. The problemis reformulated as an equivalent one on a boundary T using natural boundary reduction.The governing equation is first discretized in time, leading to a time-stepping scheme,where an exterior elliptic problem has to be solved in each time step. By Fourier ex-pansion, we derive a natural integral equation of the elliptic problem related to timestep and Poisson integral integral formula over exterior circular domain. Finite elementdiscretization of the natural integral equation is employed to solve this problem. Thecomputational aspects of this method are discussed. Numerical results are presented toillustrate feasibility and efficiency of our method.